RAC Insurance

Summary

RAC Life Insurance provides a range of life insurance options in Australia, including Life (Death Cover), TPD, and Trauma Insurance. Underwritten by NobleOak

Company Overview

RAC Life Insurance Company Overview

RAC Life Insurance offers a suite of life insurance solutions designed to provide financial protection to Australians. The product range includes:

Life Insurance (Death Cover): Providing a lump sum payment to beneficiaries in the event of death or if the insured is diagnosed with a terminal illness.
Total and Permanent Disability (TPD) Insurance: Offering a lump sum payment if the insured becomes permanently disabled due to sickness or injury and is unable to return to work.
Trauma Insurance: Paying a lump sum if the insured is diagnosed with one of the specified serious medical conditions.

While RAC promotes these insurance products to its members, the policies are underwritten by NobleOak. The distribution and advice process for RAC Life Insurance involves AIA Financial Services Limited, which holds the necessary financial services license. RAC Distribution Pty Ltd and Peakbound Four Pty Ltd operate as Authorised Representatives of AIAFS. This arrangement allows RAC to offer a wider range of financial security options to its customers while partnering with specialist providers for the insurance underwriting and distribution.

Key Information

Key Information – RAC Life Insurance

Underwriter: NobleOak

Distributor: RAC Distribution Pty Ltd

AFSL: 231109 (AIA Financial Services Limited)

Types of Cover Generally Offered:

Life Insurance (Death Cover)
Total and Permanent Disability (TPD) Insurance
Trauma Insurance

Target Market:

Australian Residents
Consumers seeking life insurance products to provide financial security and support during challenging times.
Individuals looking for a range of cover options, including high maximum cover amounts (up to $25 million for certain policies).

Key Features:

Life Cover: Provides a lump sum payment to beneficiaries upon the death of the insured or diagnosis of a terminal illness. Includes benefits like a funeral advance, terminal illness benefit, financial advice benefit, and grief counseling benefit.
TPD Cover: Offers a lump sum payment if the insured becomes permanently disabled due to sickness or injury and is unable to return to work.
Trauma Cover: Pays a lump sum if the insured is diagnosed with one of the specified serious medical conditions.
Additional Features (RAC Life Protect): Bonus Cover (1% annual increase), Immediate Cover, Joint Policy Discount, RAC Member Special Rates, Benefit Indexation, Children’s Trauma Cover, AIA Vitality program access.

Premium Structure:

Premiums are influenced by factors like the level of cover, optional covers, payment frequency, automatic benefit indexation, age, gender, smoking status, health history, number of children (if applicable), and discounts.
Premiums are guaranteed for one year but can be varied annually.
Payment options include credit card or direct debit.

Notes:

While our research doesn’t explicitly state who the product might not suit, it does state that premiums were higher than average for individuals aged 40 and 50, and cover is not available for those over 74 years old.
Policies include exclusions, such as for suicide within the first 13
months, self-inflicted injury, criminal activity, war, and certain high-risk activities.

History and Milestones

RAC Life Insurance – History and Milestones

RAC Life Insurance, provided through RAC WA, is offered by NobleOak Life Limited, an established Australian life insurer. RAC WA has a long-standing history of serving Western Australians.

Key Milestones:

1905: Established in Western Australia.
1916: Became an incorporated association.
1922: Honored with the Royal prefix by King George V.
Present: A motoring club and mutual organization offering motoring services, insurance, travel, and other benefits to members.

NobleOak Life Limited also has a significant history in the Australian life insurance industry:

1877: Established as an Australian life insurer.
Present: Provides life insurance products, including those offered through RAC WA.

Key Strengths

RAC Life Insurance – Key Strengths

RAC Life Insurance offers several notable strengths that contribute to its competitive position in the Australian market:

Strong Product Rating: RAC Life Insurance has received a "Great" rating from Finder, with a score of 8.4 out of 10. This indicates a strong combination of features and benefits compared to other life insurance options.
High Maximum Cover: Certain policies offer substantial maximum cover amounts, including up to $25 million for life insurance and significant coverage for TPD and Trauma insurance, catering to individuals with substantial financial protection needs.
Underwritten by a Reputable Insurer: The policies are underwritten by NobleOak, a well-established and reputable insurer in Australia, providing a foundation of trust and security.
Valuable Built-in Benefits: RAC Life Insurance policies include a range of valuable built-in benefits, such as:
- Funeral Benefit: Providing financial assistance for immediate funeral expenses.
- Terminal Illness Benefit: Offering an advance payment of the death benefit upon diagnosis of a terminal illness.
- Financial Advice Benefit: Reimbursing the costs of financial advice to support beneficiaries after a significant claim.
- Grief Counselling Benefit: Providing financial assistance for grief counselling services.
Additional Features (RAC Life Protect): The RAC Life Protect policy includes extra features that enhance its value proposition:
- Bonus Cover: Automatic annual increase in the sum insured.
- Joint Policy Discount: Making cover more affordable for couples.
- AIA Vitality Program: Integrating wellness with insurance, offering potential premium discounts for healthy lifestyles.

These key strengths collectively position RAC Life Insurance as a competitive provider in the Australian life insurance market, offering a range of valuable products and features supported by a reputable underwriter and a strong distribution network.

Why Choose RAC Insurance

✓ Highly rated product

RAC Life Insurance has been recognized in the industry with accolades for their customer satisfaction and competitive features.

✓ Strong financial protection

Certain policies with RAC offer high maximum cover amounts, providing substantial financial protection for beneficiaries.

✓ Reputable underwriter

Policies are underwritten by NobleOak, who, are a well-established Australian life insurer with a long history, offering security and reliability (you are in good hands).

✓ Comprehensive core benefits

RAC Life Insurance includes valuable built-in benefits such as funeral expense assistance, terminal illness advances, and financial and grief counseling support.

✓ Value-added features

The RAC Life Protect policy offers extra benefits like increasing cover over time, joint policy discounts, and the AIA Vitality program, enhancing the overall value proposition.

✓ Choice and Flexibility

RAC Life Insurance provides a range of policy options (e.g., RAC Life Insurance and RAC Life Protect) with varying cover levels and features, allowing you to choose a policy that suits your individual needs and circumstances.

Features and Benefits

High Sum Insured Option

nRAC Life Insurance offers a high level of financial protection, with a Sum Insured option of up to $25 million for eligible applicants. This allows for significant financial security for beneficiaries. .

Flexible Cover Options

RAC My Protection Plan provides flexibility by allowing customers to choose from various insurance types, including Life Cover, TPD, Trauma, and Income Protection.

Advance payment for funeral expenses

RAC Life Insurance includes a Funeral Advance Benefit, providing a lump sum payment of $30,000 to assist with immediate funeral costs upon the death of the insured.

Terminal illness advance

The policy offers a Terminal Illness Benefit, which allows for the advance payment of the Death Benefit if the insured is diagnosed with a terminal illness with a life expectancy of 24 months.

Family & carer support package

RAC Life Insurance provides a Family and Carer Support Benefit, offering a package of services like family care support, home care support, and funeral attendance support, up to a maximum of $25,000.

Guaranteed Renewability

RAC My Protection Plan offers guaranteed renewability, ensuring that your insurance cover can be renewed each year up to the expiry age, as long as premiums are paid.

Cover Amount Ranges

RAC Life Insurance - Cover Amount Ranges

RAC Life Insurance provides a range of cover amount options to cater to different needs and financial circumstances. The available cover amounts vary depending on the specific type of insurance.

Here are the typical cover amount ranges available through MetLife Australia:

Life Cover (Death Cover):You can choose an amount of cover from $50,000 up to $25 million.If you are aged 70 - 74, the maximum you can apply for is $500,000.
Total and Permanent Disability (TPD) Insurance:You can apply for an amount between $50,000 and $5 million, provided it is not higher than your Life Insurance Sum Insured.
Income Protection Insurance:You can apply to insure up to 70% of your income. The minimum monthly benefit is $1,500, and the maximum monthly benefit is $30,000.

Trauma (Critical Illness) Insurance:Choose an amount of cover from $50,000 up to $2 million.

Special Promotions & Discounts

Life Insurance Compare Australia

RACdoes not currently have any special promotions with Life Insurance Compare, however you can use the comparison tool to compare RAC Life Insurance policies with other providers.

Pros and cons of RAC Life Insurance

Table 1.1 - Pros and cons of RAC Life Insurance
Pros	Cons
Backed by a Trusted Brand: RAC is a well-known and respected organisation in Western Australia with a long-standing reputation for member-focused service.	Limited Availability: Primarily available to WA residents, which may not suit those living in other states.
Simple Application Process: Offers an easy online application process with no medicals required for certain cover levels.	Fewer Policy Options: Compared to larger insurers, RAC may offer fewer policy customisation features.
Up to $1.5 Million Cover: Competitive cover amount for life insurance.	No Direct Financial Services License: Policies are underwritten by NobleOak, which means RAC is not the direct insurer.
Member Benefits: Eligible RAC members may receive discounts or loyalty bonuses on premiums.	Limited Online Policy Management: Online account functionality is more limited compared to some digital-first insurers.
Good Value for Non-Smokers: Premiums are often more competitive for healthy, non-smoking individuals.	Less Known Nationally: While strong in WA, RAC is not as nationally recognised in the insurance market compared to brands like TAL or AIA.

Sustainability and Corporate Responsibility

Sustainability & Corporate Responsibility – RAC

RAC has a strong focus on sustainability and corporate responsibility, particularly within Western Australia where its roots run deep. As a member-driven organisation, RAC invests in initiatives that benefit both the community and the environment.

Environmental Sustainability: RAC is committed to reducing its environmental impact. It actively supports low-emission transport solutions, funds research into climate-resilient infrastructure, and advocates for cleaner, safer roads. Through its Electric Highway® network, RAC is helping accelerate the adoption of electric vehicles across WA.

Social Responsibility: RAC reinvests profits into community initiatives through its Member Benefits and Advocacy programs. This includes funding road safety campaigns, supporting young driver education programs, and working with government bodies to improve transport systems across the state.

Community Investment: RAC's community sponsorships and grants program supports local organisations and projects that align with its purpose – to make WA a better place to live. It also runs public education campaigns focused on issues like mental health, sustainability, and safe driving.

Ethical Governance: As a mutual organisation, RAC prioritises transparency, accountability, and member-focused governance. Its business decisions are guided by long-term value creation and sustainability principles, not shareholder profits.

By integrating sustainability into its business practices, RAC aims to create lasting, positive impact for its members, the community, and the environment.

Technology and Innovation

Technology & Innovation – RAC Life Insurance

RAC continues to embrace innovation to improve the way it delivers services and solutions to its members, including in the area of life insurance and broader mobility.

Digital Member Experience:RAC has invested heavily in enhancing its digital platforms, allowing members to manage policies, access services, and receive support through user-friendly online portals and mobile apps. This includes streamlined access to quotes, applications, and customer support for life insurance products underwritten by NobleOak.

Connected and Automated Vehicle Trials:RAC is at the forefront of transport innovation in Australia, having launched Australia’s first fully autonomous electric shuttle trial in Western Australia. This initiative aims to explore the future of mobility and how emerging technology can improve road safety and reduce congestion.

EV and Sustainability Tech:Through the RAC Electric Highway® and EV advocacy, RAC is supporting clean energy adoption across WA. These efforts contribute to its sustainability goals and help future-proof transport for the next generation.

Innovation Hub and Partnerships:RAC supports local startups, research, and technology partnerships through its involvement in initiatives like the RAC Innovation Hub and partnerships with universities and transport tech leaders. These collaborations focus on smart mobility, data-driven safety improvements, and community-focused solutions.

RAC’s technology-driven approach underpins its mission to deliver greater value to members while preparing for the future of insurance, mobility, and sustainability in WA.

Claims Process

Notification of claim

The first step is to contact NobleOak (the underwriter) to notify them of the claim. You can do this by phone or email. A claims consultant will guide you through the next steps and provide the required documentation.

Receive claims pack

A personalised claims pack will be sent to you. This will include all necessary forms and a checklist of supporting documents needed (such as death certificate, medical reports, or proof of identity, depending on the claim type).

Submit documentation

Complete the claim form and return it along with the required documents. The claims team may contact you for additional information if needed to assess the claim accurately.

Claim assessment

NobleOak will assess the claim promptly and may liaise with medical professionals or other relevant parties. Throughout this process, you’ll be kept informed about the progress.

Outcome & payment

Once approved, the benefit payment is typically made directly to the nominated beneficiary’s bank account. If the claim is not accepted, detailed reasons will be provided, and the decision can be reviewed. RAC and NobleOak aim to handle claims with empathy, transparency, and efficiency, ensuring that members and their families receive the support they need when it matters most.

Partnerships & Affiliations

NobleOak

RAC Life Insurance policies are underwritten by NobleOak Life, an award-winning Australian life insurer known for its high claims payout rate and customer satisfaction. This partnership ensures that RAC members have access to quality cover backed by a specialist life insurance provider.

Pricing and Premiums

RAC - Pricing and Premiums

Premiums for RAC Life Insurance are structured as variable age-stepped premiums. This means that the initial premium is based on the insured's age when the policy begins, and it generally increases each year as the insured gets older.

Several factors influence the calculation of premiums:

Age: Generally, as the insured's age increases, so does the premium, due to the higher probability of claims.
Sex: Premium rates can vary between males and females, reflecting differences in claim rates for certain benefits and conditions.
Benefit Type: Different types of cover (e.g., Life Cover, TPD Cover) have different premium rates.
Amount of Cover: Higher cover amounts result in higher premiums.
Benefit Options: Optional benefits or policy features may affect the premium.
Personal Circumstances: Factors such as occupation, smoking status, health, family medical history, and lifestyle can influence the premium.

Important Information Regarding Premiums:

Premiums are not guaranteed to remain constant and may change over time.
Monthly premium payments include a 5% loading.
There is no loading for annual premium payments.
The insurer may apply a discount for new customers, which may reduce over time.

Product Disclosure Statement

Product Disclosure Statement - RAC Life Insurance

The RAC Life Insurance Product Disclosure Statement (PDS) is designed to help you understand the key features, benefits, terms, conditions, risks, and exclusions of the RAC My Protection Plan and to assist you in deciding if this product is right for you. It also includes information about premium payments, the claims process, and how to make a claim.

Key Information:

Product Name: RAC My Protection Plan
Issue Date: 15 December 2024
Insurer: NobleOak Life Limited (ABN 85 087 648 708, AFSL No. 247302)
Distributor: RAC Insurance Pty Ltd

What’s Included:

Life Cover: Pays a lump sum (Sum Insured) if you die or become terminally ill.
Total and Permanent Disability (TPD) Insurance: Pays a lump sum if you're unlikely ever to work again because of sickness or injury.
Trauma Insurance: Pays a lump sum benefit if you suffer a serious listed medical condition.
Income Protection Cover: Pays a monthly benefit if you cannot work due to sickness or injury.
Business Expenses Insurance: Helps cover the fixed running costs of your business if you can’t work due to Sickness or Injury.

Important Notes:

RAC My Protection Plan is issued by NobleOak.
RAC My Protection Plan offers several different insurance types, each providing a benefit for different scenarios.
RAC My Protection Plan is a fully underwritten life insurance contract.
Premiums are called Variable Age - Stepped Premiums and are based on your age and generally increase each year.
We guarantee to renew your insurance cover each year up until the expiry age that applies for your cover, provided you continue to pay your premiums.
You can cancel your RAC My Protection Plan insurance at any time without an exit fee.
If you have a concern about your insurance cover or any aspect of our service, please tell us about it.
If you think you may be able to claim, please let us know as soon as possible (ideally within 14 days).
RAC pay all eligible claims promptly once processed, under the condition that the Member answered all questions truthfully and completely during the application process and at claim time.
Your insurance cover, and their liability to pay claims, will end if any of the following events occur: You don't pay your premiums when they are due, We pay the full Sum Insured, You die, You join the armed forces of any country, You cancel your insurance by letting us know in writing, Legal proceedings are commenced for your winding up, Your insurance ends, as set out for each cover type under Exclusions and Limitations.
Any advice given in the PDS is of a general nature only and doesn't account for your individual circumstances.
When you apply for insurance and we accept your application for cover, you have a contract of insurance with us.
A self-managed superannuation fund (SMSF) trustee or an Approved Superannuation Fund trustee can purchase this product on behalf of the Life Insured as a member of the fund.

IMPORTANT NOTE: This information is general information only, which means it doesn't consider your individual objectives, financial situation or needs. You should consider the appropriateness of this information to your situation before acting on it. Make sure you compare different life insurance providers in the market.

Target Market Determination

RAC Life Insurance Target Market Determination

RAC My Protection Plan is a suite of insurance products designed to provide financial protection to consumers seeking to mitigate risks associated with death, disability, illness, or injury. It is essential to understand that this overview is based on the Target Market Determination; for comprehensive product details, consumers should consult the official Product Disclosure Statement (PDS).

TMD Effective Date: 15 December 2024
Issuer: NobleOak Life Limited (ABN 85 087 648 708, AFSL No. 247302)
Distributor: RAC Insurance Pty Ltd

Target Market

RAC My Protection Plan is tailored for consumers who:

Are Australian residents seeking life insurance products.
Want to insure against the risk of death, terminal illness, disability, trauma, or inability to work due to sickness or injury.
Need financial protection to provide for loved ones, cover debts, and manage financial liabilities.
Seek a range of cover options and flexible insurance solutions.
Can afford to pay premiums for the chosen cover.

Detailed Key Features

RAC My Protection Plan offers various cover types:

Life Cover: Provides a lump sum payment (Sum Insured) to beneficiaries upon the insured's death or diagnosis of a terminal illness.
Total and Permanent Disablement (TPD) Cover: Pays a lump sum if the insured becomes totally and permanently disabled due to sickness or injury and is unlikely to work again.
Trauma Insurance: Provides a lump sum payment if the insured is diagnosed with a specified serious medical condition.
Income Protection Cover: Replaces a portion of the insured's income if they cannot work due to sickness or injury.
Business Expenses Insurance: Covers fixed business running costs if the insured cannot work due to sickness or injury.

Premium Structure Options

Premiums are generally age-based and may increase over time.

When RAC My Protection Plan Might Not Be Suitable

This is not explicitly detailed in the documents, but suitability depends on individual circumstances, financial needs, and the ability to pay premiums. Consumers should carefully consider the PDS to determine if the product aligns with their specific requirements.